This is the second time someone has asked about ANE. I am not aware of any activity.
According to its website:
http://www.americasnaturalenergy.com/about.html, it is a natural gas company. The Bakken does have some natural gas, but it is not known for that. It is an oil field.
But who knows, maybe ANE will be looking at the Bakken.
I have a feeling that a lot of these outlying areas, especially Adams and Hettinger County are going to get their hopes way up only to have them crushed. Chesapeake's actions could have already put the lid on the coffin. The TOC of the three forks just isn't that great further south. The Tyler formation has a lot of secrets to be discovered but it may take years, this cycle could bust before that formation's extent is truly revealed. It's all about making a buck and the hot spots are a solid bet right now.
Sometimes I wonder if this is really to good to be true. It seems as if since the hot spots are such a good bet that even if oil goes to say $50/barrel that ND could keep on chugging along. They will have a slow down obviously but not everyone would just pick up and leave. Can oil even be produced anywhere in the world for under that amount anymore? Has the middle-east ever really busted? ND companies aren't drilling and praying they get oil, they almost always get oil and because of that, this play has a lot less of a bust potential than previous cycles. I feel quite bad for South Dakota. I bet they are just pissed. I'm from Perkins County SD and I know I'm pretty jealous.
1. It will be too good to be true if the EPA lowers the boom (which I no longer expect; some marginal changes, but not enough to stop the industry cold).
2. No, you are correct, oil cannot be produced this cheaply ($50/bbl) anywhere in the world. Saudi Arabia says their budget requires $87/bbl. Canadian oil sands used to be $60/bbl; probably more now. And then add in terrorists willing to kill oil workers; and countries where the leader can nationalize all our assets -- by those standards, ND is pretty friendly.
3. I have blogged about that often: there are "no" dry wells. That certainly cuts down on risk, doesn't it? Sure, some uneconomical wells, but even these are often due to drilling/completion errors and they will go back into those wells.
About being jealous: yes, life is not fair. But to make you feel better, I have absolutely no direct earnings from the Bakken. No mineral rights, no royalties, no business, nothing. I do invest in the stock market, but that's my only financial tie to the Bakken.
I just have an emotional attachment to it.
Thank you very much for taking time to comment. I enjoy hearing from readers.
i think the area east and north of minot in the Spearfish formation will blossom this year.. Renegade pet. has a good size block of acerage they are projecting to drill some in 2012..
Anyone ever hear of American's Natural Energy (ANE) out of Irvine, CA or a Robert Milligan that are active in the Bakken?
ReplyDeleteThis is the second time someone has asked about ANE. I am not aware of any activity.
DeleteAccording to its website:
http://www.americasnaturalenergy.com/about.html, it is a natural gas company. The Bakken does have some natural gas, but it is not known for that. It is an oil field.
But who knows, maybe ANE will be looking at the Bakken.
I have a feeling that a lot of these outlying areas, especially Adams and Hettinger County are going to get their hopes way up only to have them crushed. Chesapeake's actions could have already put the lid on the coffin. The TOC of the three forks just isn't that great further south. The Tyler formation has a lot of secrets to be discovered but it may take years, this cycle could bust before that formation's extent is truly revealed. It's all about making a buck and the hot spots are a solid bet right now.
ReplyDeleteYou are quite correct, agree 100%. Though for some, it appears, this is great news, if there is no development in their area. Smile.
DeleteSometimes I wonder if this is really to good to be true. It seems as if since the hot spots are such a good bet that even if oil goes to say $50/barrel that ND could keep on chugging along. They will have a slow down obviously but not everyone would just pick up and leave. Can oil even be produced anywhere in the world for under that amount anymore? Has the middle-east ever really busted? ND companies aren't drilling and praying they get oil, they almost always get oil and because of that, this play has a lot less of a bust potential than previous cycles. I feel quite bad for South Dakota. I bet they are just pissed. I'm from Perkins County SD and I know I'm pretty jealous.
ReplyDeleteYou raise a number of good points.
Delete1. It will be too good to be true if the EPA lowers the boom (which I no longer expect; some marginal changes, but not enough to stop the industry cold).
2. No, you are correct, oil cannot be produced this cheaply ($50/bbl) anywhere in the world. Saudi Arabia says their budget requires $87/bbl. Canadian oil sands used to be $60/bbl; probably more now. And then add in terrorists willing to kill oil workers; and countries where the leader can nationalize all our assets -- by those standards, ND is pretty friendly.
3. I have blogged about that often: there are "no" dry wells. That certainly cuts down on risk, doesn't it? Sure, some uneconomical wells, but even these are often due to drilling/completion errors and they will go back into those wells.
About being jealous: yes, life is not fair. But to make you feel better, I have absolutely no direct earnings from the Bakken. No mineral rights, no royalties, no business, nothing. I do invest in the stock market, but that's my only financial tie to the Bakken.
I just have an emotional attachment to it.
Thank you very much for taking time to comment. I enjoy hearing from readers.
i think the area east and north of minot in the Spearfish formation will blossom this year.. Renegade pet. has a good size block of acerage they are projecting to drill some in 2012..
ReplyDeletehttp://www.renegadepetroleum.com/
I'm hoping to see some increased activity in the Spearfish.
ReplyDelete